NZ Dollar Rises As China Manufacturing Activity Returns To Growth
01 November 2024 - 12:44PM
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The New Zealand dollar strengthened against other major
currencies in the Asian session on Friday, after China's
manufacturing activity returned to growth in October as companies
ramped up production and purchasing to meet higher demand amid
improving confidence.
Data from S&P Global showed that the Caixin manufacturing
Purchasing Managers' Index rose to 50.3 in October from 49.3 in
September. A reading above the neutral mark of 50.0 indicates
expansion.
The official PMI survey results published by the National Bureau
of Statistics showed that the factory activity grew for the first
time in six months. The PMI hit 50.1 in October, up from 49.8 in
September.
Meanwhile, traders remain cautious and seemed reluctant to make
significant moves ahead of the highly anticipated U.S. monthly jobs
report later in the day as well as next week's U.S. presidential
election. The uncertainty about the outlook for interest rate cuts
weighed on market sentiment.
In economic news, data from Statistics New Zealand showed that
the total number of building permits issued in New Zealand was up a
seasonally adjusted 2.6 percent on month in September, after
slumping 5.2 percent in August.
In September, there were 2,943 new dwellings consented,
comprising 1,378 stand-alone houses; 1,091 townhouses, flats, and
units; 277 apartments; and 197 retirement village units.
In the Asian trading now, the NZ dollar rose to a 2-day high of
0.5984 against the U.S. dollar, from yesterday's closing value of
0.5976. The kiwi may test resistance around the 0.61 region.
Against the yen and the euro, the kiwi advanced to 91.25 and
1.8180 from Thursday's closing quotes of 90.85 and 1.8205,
respectively. If the kiwi extends its uptrend, it is likely to find
resistance around 93.00 against the yen and 1.78 against the
euro.
The kiwi edged up to 1.0992 against the Australian dollar, from
an early 4-day low of 1.1027. On the upside, 1.08 is seen as the
next resistance level for the kiwi.
n economic news, the manufacturing sector in Australia continued
to contract in October, albeit at a slower rate, the latest survey
from Judo Bank revealed on Friday with a manufacturing PMI score of
47.3. That's up from 46.7 in September.
Meanwhile, the Australian Bureau of Statistics said producer
prices in Australia were up 0.9 percent on quarter in the third
quarter of 2024. That exceeded expectations for an increase of 0.7
percent, although it eased 0.1.0 percent in the three months prior.
On a yearly basis, producer prices climbed 3.9 percent - roughly in
line with forecasts and down from 4.8 percent in the previous three
months.
Looking ahead, U.K. Nationwide house price data for October,
Switzerland consumer prices, retail sales and PMI data, for October
and U.K. S&P Global final manufacturing Purchasing Managers'
survey data for October are slated for release in the European
session.
In the New York session, U.S. jobs data for October, U.S. Dallas
Fed PCE index for September, Canada and U.S. S&P Global
manufacturing PMI for October and U.S. Baker Hughes weekly oil rig
count data are set to be released.
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